EUR saw a substantial rise. Overview for 24.10.2023

The main currency pair reached its October high on Tuesday. The current EURUSD exchange rate stands at 1.0680.

The US government bond yield stepped back from the peak upon reaching 5% and attracting lots of traders.

The currency pair also received some support from the alleviation of the geopolitical risks. The fact that the conflict has not escalated and certain diplomatic success has been reached is interpreted positively by the market.

This week, the macroeconomic calendar will be saturated. The US is posed to issue the PMI report and the Core PCE index, which is the inflation component specifically tracked by the Federal Reserve. Moreover, the US is preparing to publish the preliminary Q3 GDP statistics. The European Central bank will have a meeting on Thursday. This meeting is unlikely to change the monetary policy significantly but its results are still worth taking a look at. Both the ECB and Fed will be ready to soften their credit and monetary policies in June-July 2024.